Hire employees in Austria
With Nomad Global Hire PEO / EOR services, you can easily hire employees in Austria, without having to set up your own entity. No risk and fully compliant with HR support included
What to know about Austria
Austria is home to six Unicorns!
Employer Tax
Estimated at 30%
Currency
EUR, Euros
Available Employee Benefits
Medical insurance, Meal Vouchers
Employee Tax
Incremental up to 55%
Payroll Frequency
Monthly over 14 payments
Main Universities
University of Vienna, University of Innsbruck, University of Graz
Capital
Population
Circa 9 Millions
Available Contracts
Fixed Term Contract, Indefinite/Permanent
Although a relatively small country with 9 Million inhabitants, Austria has a huge influence in the European startup, tech and digital ecosystem. It is home to 6 companies which have developed into Unicorns (Bitpanda, Loxone or Gostudent for example), which shows the highly qualified, trained and committed Talent that can be hired in the country. If you want to expand internationally and hire employees in Austria, or if you want to promote internal mobility and relocation to this beautiful country and full of history, NOMAD Global Hire can support you with their local Employer of Record (EOR) services by managing locla employment and compliance, without the need to open a local entity
Payroll, Benefits & Tax in Austria
- Average Salary : 48,000 Euros per year GROSS for skilled employees
- Employer Tax in Austria is usually up to about 30%. This includes mostly the Social insurance and Pension tax
- Employee Tax in Austria is incremental up to 55% per income parts:
- There is a Tax-free amount set at 11,000 EUR
- Income Tax is at a flat rate of 20% for the income between 11,000 and 18,000 EUR of annual income
- Income Tax then steps to 35% for the income up to 31,000 EUR
- Income Tax then steps to 42% up to 60,000 EUR, 48% to 90,000 EUR, 50% up to 1 Million EUR and 55% over 1 Million EUR.
- Overtime (or Uberstunden) in Austria is covered by the Arbeitszeitgesetz. It allows overtime and it has to be paid by law, although that would also depend on the collective agreements in place and the type of contracts.
- Payroll Frequency in Austria is Monthly but over 14 months with double payments twice during the year
- Maternity Leave in Austria is up to 16 paid statutory weeks. The Mother has to take 8 weeks before the birth date and 8 weeks after the birth of the child. It can be extended to 28 months.
- Paternity Leave is 1 Month in Austria.
- Parental Leave is 2 months in Austria and can be taken until the child reaches 2 years of age. It is called Karenz and can be taken by any parent (although the 2 months is a total for both of them)
- Sick Leave in Austria is covered for up to 60 days or 12 weeks but is dependent on the length of service of the employee with the employer.
- Statutory Leave is 25 days minimum per year so enough for all employees to keep fresh and motivated
- Bank holidays: there are 13 national days in 2023 in Austria
- Termination can be done for every valid cause in Austria, see below
- Notice period is depending on the length of service of the employee in the business
The Austrian Labor Code is setting the framework for employment in Austria. This covers all individual and collective working relationships, Compensation and Benefits, Workers rights as well as Leave (Sick, Parental), employment Termination and Discrimination.
Onboarding and Termination in Austria
- Probation period are not mandatory under Austrian Labour Law
- Probation period in Austria however can be of 1 day to 1 month maximum
- You can hire through Fixed Term Contracts (although more restrictive), Indefinite / Permanent contract or BtoB contracts
- Employment Contracts do not necessarily need to be in German and can be in English (or both) as well
- Termination is Austria is generally a straight-forward process and requires, in order to be compliant, to respect the notice periods set up by law. Termination can occur as such:
- By mutual agreement
- By resignation of the employee
- By expiration of contract
- By the employer on grounds of disciplinary dismissal, failure to perform in probation period, reduction of work or end of the activity, unsatisfying performance without acceptable reason
- Termination of Fixed Term Contracts is more restrictive, so it is advised to always provide Indefinite/Permanent contracts
- It is always advised to reach a Mutual Agreement to validate a Termination in Austria
- The notice period in Austria is depending on the length of employment and can go from 6 weeks to 5 years:
- It is 6 weeks for service of less than 2 years
- 2 months for length of service between 2 years and 5 years
- 3 months for length of service between 5 years and 15 years
- Severance payments in Austria are not mandatory, but every month a small percentage of the income will be paid into the employee’s severance fund which can then be requested by the employee upon leaving.
Fixed Management Fee
We charge a fixed monthly fee depending on the level of the salary of the hired employee
- Local Contract Management
- Payroll Management
- Tax and Compliance
- HR Support
Employee Nomad set up fee
Everything to get you started on Nomad and ensure piece of mind for you and your new hire
- Sign up to the NOMAD Services
- Benefits Setup (if available)
- Tax authority liaisons
- An additional Deposit of 1 full month salary cost will be required
Estimated Employer tax costs
Employer Tax in Austria is estimated around 30% (may vary depending on circumstances)
- Social insurance
- Pension
- Others
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